On March 18, 2010, MIS received a “Wells Notice” from the Staff of the SEC stating that the Staff is considering recommending that the Commission institute administrative and cease-and-desist proceedings against MIS in connection with MIS’s initial June 2007 application on SEC Form NRSRO to register as a nationally recognized statistical rating organization under the Credit Rating Agency Reform Act of 2006.

Well at least it took Moody's under two months to report this massively material development, which while we are not positive on how to read the C&D action on the NRSRO registration, could mark the beginning of the end for the rating agency. If the firm is enjoined from providing additional rating research should the SEC action find fault and proceed with a lawsuit, it would mean game over for the business. Egan-Jones: it's IPO time.

We will be shocked, shocked we tell you, to find that Mr. Buffett has sold out his entire position in MCO when BRK's next 13-F is filed.

I wouldn't put it past the SEC to be gunning for taking over the duties of the rating agencies. We'll probably see some arguments surfacing soon, that private industry has no right to give credit ratings.

Interesting. they should have filed an 8-K when they got the notice as this is a material development. More interesting is the question of what the notice is about. It looks like not everyone at the SEC has been surfing porn LOL.

Morrie: Henry, you're a good kid, I've been good to you, you've been good to me. But there's something really unreasonable going on here. Jimmy's being an unconsionable ball-breaker. I never agreed to 3 points on top of the vig! Am I something special? Some sort of schmuck on wheels? Henry Hill: Morrie, please! You borrowed Jimmy's money, pay him. Morrie: I never agreed to 3 points on top of the vig! What am I, fuckin nuts? Come on! Henry Hill: Are you gonna argue with Jimmy Conway? Just give him his money so we can get the fuck outta here! Morrie: Hey! Fuck 'em! Fuck 'em in the ear! What are you talking about? Fuck 'em in the other ear, that son of a bitch! Did I ever bust his balls? Did I? Did I? I could've jumped the dime a million times, and I wouldn't have to pay tip! Henry Hill: Come on, Morrie, you're talking crazy, stop it! Jimmy Conway: [Grabs telephone cord and chokes Morrie with it, then his wig falls off and Henry starts laughing] You got money for that fuckin commercial. Fuckin' commercial, you don't got my money, you don't got my fuckin money, huh?

Ah, such a shame. Hard to tell if they're being punished for years of shitty puffed up ratings or the current occasional truthful rating. Couldn't happen to a nicer bunch of people with a moral compass that always points at the easy money.

Well, Sheeple, there was a time I woulda agreed with you. But even if they hit your .01 bid that we saw so many of Thursday and by some voodoo magic Moody's were to get off, they would just bust our trade. Even a real casino pays off the occasional winner. Now these fuckers are trying to welsh on the few playas they got left.

Moody gets a Well Notice on March 18 and Warren Buffet goes and sells about 1 million shares within 3 days. Wonder if he was told about about the Well Notice. If so, insider trading. he was trading on inside information.

Are the junkyard dogs that are the federal govt turning on their masters (Wall St)? It would make sense, as the panic sets in over the anger around the globe in the peasants and serfs. How will the war progress? Is it war or psyops?

Banksters can grease the skids, but unless they have their own private army behind them to back up their play they're totally up shits creek.

Only one group of people can call in the US Marshals/FBI/Secret Service/CIA/etc. to conduct raids and detain (arrest) criminals.

And, there's no way on God's Little Acre that the politicos are ever gonna give up that power. All the banksters can do is target them at election time. (Although some have speculated that the Kennedy assination was a result of his desire to eliminate the Federal Reserve.)

So if the banksters believe for one second they have the upper hand they are severly delusional.

But, all these assholes are nothin' more than trannie whores. They all went to the same IVY League schools, all engaged in various forms of unhibited sexual adventures with each other, and all have checkered pasts that keep them doing the bidding of the monied elites who have opened doors for them since day one. (ahem, does this sound like Obama to anyone?)

Another prime example is Little Timmy Gieghtner. Mr. Tax Dodger will do anything asked of him over at Treasury to keep from spending time in Federal Prison. With his delicate nature his only chance of survival is to become a Queen.

I know its easy to be critical and pessimistic about the SEC, but I applaud this move. Its long overdue. Getting rid of the corrupt ratings agencies will bolster market confidence, but it is probably too little too late. I think what we fear is that they will replace them with another inadequate and corruptible institution.

Buffet has been scaling out of his moodys position for some time now, while saying they did nothing wrong (sound familiar? GS).

Technically, I could execute Lord Blankfein, and I wouldn't have done anything wrong. Unless it can be proven. And I get caught. And there is enough evidence to indict. And, if found guilty, 12 jurors convict me. And I don't appeal.

I only hope all those "idiot" gold bugs that have been hoarding the barbaric relic understand the awesome responsibility that will soon be thrust on them as they become the new holders of the physical trust.

I apologize for using the term "hope" if it in any way is/was associated with a sense of admiration for this administration, its' attorneys at large or the advancement of their pragmatic solutions that are destroying true wealth in the US, TRUST. AU gains more value when held, administered and dispensed in an environment of soveriegnty and this current regime has squandered their temporary positions of elected authority thus far, so it will fall on the soveriegn citizenry's shoulders to pick up where these bozos have failed. imo

I am working again and cannot access any internet during the day, etc..... still adjusting to a much different and more restrictive routine than my previous work life but am happy to have work.

in case anyone is wondering, it is still a depression out there as far as i'm concerned...... good news is the family is well and i do spend more time praying for those in very difficult situations right now.

Speaking of bands. The current concept is quite simple. The playbook of ACTORS repeat this over & over again. Just like a market bubble, a small prick can cause chaos. New reform and restrictions to further their cause, hence the new bubble. The illusionist's have been exposed, they're having a hard time during the denial stage.

Jules: There's a passage I got memorized. Ezekiel 25:17. "The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you." I been sayin' that shit for years. And if you ever heard it, it meant your ass. I never really questioned what it meant. I thought it was just a cold-blooded thing to say to a motherfucker before you popped a cap in his ass. But I saw some shit this mornin' made me think twice. Now I'm thinkin': it could mean you're the evil man. And I'm the righteous man. And Mr. .45 here, he's the shepherd protecting my righteous ass in the valley of darkness. Or it could be you're the righteous man and I'm the shepherd and it's the world that's evil and selfish. I'd like that. But that shit ain't the truth. The truth is you're the weak. And I'm the tyranny of evil men. But I'm tryin, Ringo. I'm tryin' real hard to be the shepherd.

I gotta admit that at the first reading - this looked a lot like a posting from Mr. Ben D. Over. But a quick reality check via GoogleNews supports that vielleicht (pardon my Deutsch) Mr. Gross' most recent double-barrelled blast from PIMCO forced a politically-correct response from the GuvMint - perhaps a bit late to to Save The World. But au moins now the annointed agencies sont dans la merde.

As implied by the adverse scenario, a financial market shock from higher interest rates could precede the threat of a downgrade. In other words, investors might be less forgiving of U.S. fiscal policy than Moody's.

Siccing the SEC on Moody's looks to be a desperation move that won't work.

Do you know what I think? I think the dot gov law enforcement activity will ramp up as the economy rolls over in an attempt to quell rising public discontent. If this is the case, then the next logical question to ask is this: Is rising LE activity a reliable indicator of the proximity of a breakdown?

Wells notices = 8-K? Seems it's not as common as you would think (or hope), based on the 8-K rules (and interpretations of those rules) around 'materiality'. I've been very surprised by interpretations of materiality before. I would think a freaking ratings agency being directly challenged vis-a-vis their LEGITIMACY to rate is material. If not, you would think it became material when they saw the SEC's position with Goldman and the effect that's having on shareholders. But, truthfully, the blames lies with .gov

Gov could legislate that a Wells notice = 8-K within 48 hours. It's that easy.

After being an avid reader of SEC filings for ten years, I think the whole system of timeliness and materiality need to be revamped.

Ray McDaniel is the Chairman and CEO of Moodys. On March 18th, the EXACT same day as the Wells Notice, he sells 100,000 shares (over a third of his holdings). This is the largest sale that he has reported in over 7 years, and it's his only sale since May of last year.

All available federal LEOs are busy planting listening devices in my underwear drawer, attending pro-gun rallies, and infiltrating Tea Parties by posing as volunteer photographers. There are none left to investigate obvious crimes committed by wealthy political "contributors". Besides, the wealthy can afford to mount an effective legal defense and are therefore expensive and time-consuming to prosecute. Much easier to testi-lie some poor sop into a ten year federal stint. Higher case turnover and better for your career.

I will not hold my breath waiting for anyone to do anything about this.